Mortgage rates have remained at their lowest levels in over a year, according to the latest data released by Freddie Mac on August 15, 2024. The 30-year fixed-rate mortgage averaged 6.49%, a slight increase from the previous week's 6.47% but significantly lower than the 7.09% rate seen at this time last year. This decrease follows a peak of nearly 8% in 2023, which had a substantial cooling effect on the housing market.
Freddie Mac's Chief Economist, Sam Khater, commented that the recent decline in rates reflects a slowdown in inflation and predicts that rates will likely continue to trend downward in the coming months. The news provides a positive outlook for both potential buyers and sellers in the housing market, with lower borrowing costs expected to ease affordability concerns.
The 15-year fixed-rate mortgage also showed a slight uptick, averaging 5.66%, compared to 5.63% last week. A year ago, the 15-year mortgage rate stood at 6.46%.
